Exercise 20-2 Budget definitions LO C1 Select each of the terms with the best description of its purpose. Terms Definitions 1. Shows expected cash inflows and outflows and helps determine financing needs. 2. A plan showing units to be sold; the usual starting point in the master budget process, 3. A report that shows predicted revenues and expenses for a budgeting period 4. A formal statement of future plans, usually expressed in monetary terms. 5. Approach in which top management passes down a budget without employee input. 6. A budgetary cushion used to meet performance targets. 7. A comprehensive business plan that includes operating investing, and financing budgets. 8. Employees affected by a budget help in preparing it